Helloworld Travel Reports $3.8B TTV and 4.1% Profit Rise in FY25
Helloworld Travel Limited reported a 4.1% rise in profit after tax for FY25 despite an 8.6% decline in total transaction value, underpinned by strong forward bookings and ongoing technology investments.
- FY25 total transaction value declined 8.6% to $3.8 billion
- Underlying EBITDA fell 8.6% to $60.6 million but margin remained steady
- Profit after tax increased 4.1% to $33.2 million with EPS up 3%
- Strong forward bookings and retail expansion plans for FY26
- Continued investment in AI and technology platforms supports growth
Financial Performance Overview
Helloworld Travel Limited has delivered a mixed but resilient set of results for the full year ended 30 June 2025. The company reported a total transaction value (TTV) of $3.8 billion, down 8.6% compared to the prior year, reflecting ongoing challenges such as lower average airfares, agency closures, and a shift in travel destination preferences. Despite this, profit after tax rose 4.1% to $33.2 million, supported by disciplined cost control and a slight improvement in revenue margin to 4.9%.
Underlying EBITDA declined by the same 8.6% margin to $60.6 million, maintaining a healthy margin of 31.4%. Earnings per share increased by 3% to 20.4 cents, signaling operational efficiency and shareholder value retention amid a softer revenue environment.
Strategic Growth and Technology Investment
Helloworld’s strategic focus on technology continues to be a cornerstone of its business model. Over the past eight years, the company has invested more than $95 million in technology, including AI-driven analytics and automation tools that enhance agent productivity and customer experience. Platforms such as the ReadyRooms hotel booking system and the Helloworld Trips App have seen significant user growth, with ReadyRooms travel revenue doubling year-on-year.
The company’s wholesale and inbound travel segments showed robust growth, with USA land travel volumes more than doubling and wholesale cruise sales up 27%. The acquisition of Barlow Travel Group in New Zealand further strengthens Helloworld’s corporate and event travel capabilities in the region.
Retail Network and Market Position
Helloworld’s retail network remains a key asset, boasting a 96% re-sign rate across branded and associate agencies. The company plans to open 15 new stores in FY26, targeting metropolitan and regional markets to expand its footprint. The Helloworld Travel Academy continues to grow, training over 12,000 attendees since 2022, underpinning talent development and succession planning.
Marketing efforts remain vigorous, with significant campaigns and media partnerships designed to boost brand visibility and drive qualified leads to agents and brokers. The company’s focus on data-driven retail growth and digital enhancements positions it well to capture evolving consumer travel preferences.
Balance Sheet and Dividend
Helloworld’s balance sheet remains robust, with $79.4 million in cash and no debt, providing liquidity to support ongoing investments and acquisitions. The company declared a fully franked full-year dividend of 14.0 cents per share, up from 11.0 cents the previous year, continuing a track record of returning value to shareholders.
Looking ahead, Helloworld anticipates providing updated earnings guidance ahead of its Annual General Meeting in October 2025, signaling confidence in its growth trajectory despite external economic uncertainties.
Bottom Line?
Helloworld’s blend of technology investment, strategic acquisitions, and retail expansion sets the stage for sustained growth, but market dynamics warrant close monitoring.
Questions in the middle?
- How will Helloworld navigate ongoing economic challenges impacting travel demand?
- What impact will the integration of Barlow Travel Group have on New Zealand operations?
- How quickly can AI and automation initiatives translate into improved margins?
